INVESTMENT OPPORTUNITY 2385 CAMINO VIDA ROBLE CARLSBAD, CA 92011 MULTI TENANT OFFICE INVESTMENT OPPORTUNITY OFFERED AT: $5,671,000 | 5.75% CAP EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEW TABLE OF CONTENTS EXECUTIVE SUMMARY 4 Offering Summary 5 Investment Highlights 6 Rent Roll 7 Cash Flow Projection 8 Replacement Cost Summary PROPERTY INFORMATION 10 Location Maps 11 Site Description 12 Floor Plans 14 Carlsbad Market Overview 20 Value Add Component 21 Property Photos 23 Aerials AREA OVERVIEW 29 Carlsbad Overview 30 San Diego County Overview 31 Demographics Confidentiality Agreement & Disclosures CAPITAL MARKETS CONTACTS RYAN BARR RYAN BENNETT Principal Principal 760.448.2446 760.448.2449 [email protected] [email protected] CA Lic#01338994 CA Lic#01826517 LOCAL MARKET EXPERTS JEFF ABRAMSON GREG GERSHMAN Principal Principal 760.929.7835 760.929.7861 [email protected] [email protected] CA Lic#00956805 CA Lic#01909272 Color Scheme RGB R:145 / G:0 / B:40 CMYK C:0 / M:100 / Y:65 / K:47 RGB R:119 / G:120 / B:123 CMYK C:0 / M:0 / Y:0 / K65 Fonts GOTHAM/ BLACK GOTHAM/ MEDIUM GOTHAM/ LIGHT 23852385 CAMINO CAMINO VIDA VIDA ROBLE ROBLE | | Carlsbad, Carlsbad, CA CA | | 2 2 2385 EXECUTIVE SUMMARY CAMINO VIDA ROBLE CARLSBAD, CA 92011 EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEW Offering Summary Investment Highlights Rent Roll Cash Flow Projection Replacement Cost Summary -- OFFERING SUMMARY -- INVESTMENT HIGHLIGHTS TENANT OVERVIEW Offering Price: $5,671,000 Securitas Security Svc 1,500 SF Net Operating Income: $326,073 Remington L&W Holdings 1,024 SF Grant IP 1,546 SF Cap Rate - Year 1: 5.75% Mike Thomas 2,000 SF Price/SF: $201 John Roach 1,531 SF Learning Genie 1,045 SF PROPERTY OVERVIEW Ramesh Enterprises 1,515 SF Property Type: Multi-Tenant (16 Units) Summit Capital 1,194 SF 2385 Camino Vida Roble EA Outsource & Bus. 1,922 SF Address: Carlsbad, CA 92011 Preferred Group Props 4,276 SF OPS Manager 1,692 SF Occupancy: 100% ConferTel 1,537 SF Property Size: Approx 28,084 sq ft Amy Peters 900 SF Land Size: 1.67 Acres Vanguard Realty Advisors 2,736 SF Global Domains Int’l 2,969 SF Ownership: Fee Simple Accent on Design 695 SF Year Built: 1986 Parking: 2.34/1,000 SF APN: 213-050-37-00 Lee & Associates is pleased to exclusively present to qualified investors, the rare opportunity to acquire an investment property located in the Camino Corporate Center business park in coastal Carlsbad. Carlsbad is located within the highly affluent North San Diego County submarket. Built in 1986, the subject property consists of an approximately 28,084 square foot, two-story multi-tenant office building located within the master planned, 147,393 square foot Camino Corporate Center. The property is located near the signalized intersection of Camino Vida Roble and El Camino Real, which sees a combined traffic count of 39,000+ cars per day, providing excellent visibility and access to the property. El Camino Real is the main North/South thoroughfare and preferred route for commuters living in the North San Diego Coastal communities of Encinitas, Carlsbad, Del Mar, La Costa, Cardiff, and Oceanside. 2385 Camino Vida Roble is 100% leased to a diverse mix of office-related tenants including Summit Capital, Vanguard Realty Advisors, ConferTel, Securitas Security Services, and Global Domains International. Tenants in the project are currently paying an average rent of $1.44 modified gross PSF, well below market rents in this submarket which are roughly $1.70 modified gross PSF. It is nearly impossible to find another office building containing the same floor plate, as well located, and at the current lease rates within the submarket. As a result, approximately 70% of the tenants have been leasing long term within the building and have exercised multiple lease extensions, reflecting commitment to the project and offering a high likelihood of renewals. Carlsbad is among the most attractive submarkets in San Diego. It is supported by an arterial freeway and a Coaster station, providing employers ease of access from San Diego and Orange County. In addition, the beach and countless outdoor amenities lift the demographic profile and attract tenants and residents alike. Carlsbad benefits from its position in North County along Interstate 5, making it easily accessible to residents in Orange County and the greater San Diego area. It also benefits from a reverse commute and high-end housing that can accommodate executives. The technology industry, ranging from sports technology to medical technology drive the economy in Carlsbad. Fortified by companies ranging from ViaSat to Fisher Scientific, the economic backbone along the coast is strong. The demographics also paint a picture of a submarket that is highly educated and well paid - nearly 60% of residents hold at least a bachelor’s degree and the median household income is almost $100,000. 2385 CAMINO VIDA ROBLE | Carlsbad, CA | 4 EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEW Offering Summary Investment Highlights Rent Roll Cash Flow Projection Replacement Cost Summary -- INVESTMENT HIGHLIGHTS -- CARLSBAD: HIGHLY DESIRABLE N. SAN DIEGO COUNTY COASTAL OFFICE MARKET • IRREPLACABLE DIRECT ACCESS & PROXIMITY TO INSTERSTATE 5 • LESS THAN 1 MILE FROM McCLELLAN-PALOMAR LOCATION ADJACENT TO EL CAMINO REAL • PREFERRED MARKET FOR CORPORATE HQ’s AIRPORT • CARLSBAD OFFICE MARKET FEATURES DIVERSE RANGE OF CLUSTERED BUSINESSES » Due to Carlsbad’s coastal location, business friendly environment, and superior quality of life, the city of Carlsbad » The property is strategically situated within proximity and direct access to Interstate 5, providing “reverse commute” houses the largest concentration of credit tenants in in North San Diego County. access from San Diego and Orange County. » The subject property is ideally situated adjacent to El Camino Real, the main North/South thoroughfare and preferred » The subject property is located less than 1 mile from Palomar Airport, San Diego County’s largest single runway route for commuters living in the North San Diego Coastal communities of Encinitas, Carlsbad, Del Mar, La Costa, airport that houses an extensive corporate jet community. Cardiff, and Oceanside. » The Carlsbad business community is made up of a wide range of business clusters that include action sports » Employers and a highly skilled labor force benefit from proximity to executive housing, affordable living options manufacturing, life sciences, clean technology, information and communications technology (ICT), hospitality and for employees, aesthetically pleasing park standards, and an abundance recreational options including world class leisure. An abundance of new wave technology, multi-media, semiconductor, healthcare and biotech companies. resorts, golf courses, gyms, spas, hiking and biking trails, surfing and retail amenities. There are as many as 30 industry-leading golf companies and 150 manufacturing plants also in Carlsbad. » Carlsbad is home to the corporate headquarters of many nationally recognized companies, such as Callaway Golf, ViaSat, Thermo Fisher Scientific, Genoptix, TaylorMade, Ionis Pharmaceuticals, and Rubio’s. These companies benefit from a well-educated work force, with 54% of its high school graduates achieving at least a Bachelor’s Degree CARLSBAD - AFFLUENT DEMOGRAPHICS ($111,000 AHI) • QUALITY OF LIFE ADVANTAGE • GOLF CAPTITAL OF THE WORLD • HEAVY TOURISM » Over 250,000 people with an impressive average household income of $111,700 live within a five mile radius of the subject property. 100% LEASED MULTI-TENANT OFFICE INVESTMENT • BELOW MARKET RENTS • OPPORTUNITY TO GROW NOI IN YEAR 2 • PRICED SIGNIFICANTLY BELOW REPLACEMENT COST • LONG-TERM TENANCY » The quality of life advantage provides Carlsbad based firms with the ability to recruit and retain local talent. » The subject property is a 100% leased multi-tenant office building, priced at well below replacement cost for this » Carlsbad is widely recognized as the “Golf Capital of the World” and is home to some of the largest and most market (see page 8 of OM). prestigious golf companies including Callaway, TaylorMade, Acushnet (Titleist) and Cobra Puma Golf. » The Tenants within 2385 Camino Vida Roble are currently paying an average rent of $1.44 modified gross PSF. Market » Carlsbad benefits from a spectacular location in North San Diego County, with access to beaches, biking, hiking, rent in this submarket is roughly $1.70 modified gross PSF. It is nearly impossible to find another office building amusement parks, and an unmatched sunny climate. The city sees between 3.5-4 million visitors per year who are containing the same floor plate, as well located, and at the current lease rates within the submarket. drawn to the area for work, play, and relaxation » 70% of the tenants have been leasing long term within the building and have exercised multiple lease extensions. This commitment to the project offers a high likelihood of renewals and speaks to the quality of the real estate. DEMOGRAPHICS 1 MILE 3 MILES 5 MILES » The current rent roll provides a future investor with a unique opportunity to either focus on renewing the current POPULATION 4,919 85,757 254,286 tenants as they roll for a continued stable cash flow or to push rents to market rates to significantly grow the net HOUSEHOLDS 1,773 32,544 89,993 operating income (see cash flow projection page 7). AVG HH INCOME $133,145 $109,990 $111,701 2385 CAMINO VIDA ROBLE | Carlsbad, CA | 5 EXECUTIVE SUMMARY PROPERTY INFORMATION AREA